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A company produces two products, Product A , which sells for $ 2 1 0 per unit, and Product B , which sells for $

A company produces two products, Product A, which sells for $210 per unit, and Product B, which sells for $270 per unit, using three activities: Design, which uses engineering hours as the cost driver; Machining, which uses machine hours as the cost driver; and Inspection, which uses the number of batches as the cost driver. The cost of each activity and usage of the cost drivers are as follows:
\table[[,,Usage by,Usage by],[Activity Pool (Driver),Cost of Pool,Product A,Product B],[Design (engineering hours),$150,000,290,210],[Machining (machine hours),500,000,1,360,2,640],[Inspection (batches),30,000,18,42]]
The company manufactures 10,000 units of Product A and 8,280 units of Product B per month. Each unit of Product A uses $32 of direct materials and $38 of direct labor, while each unit of Product B uses $84 of direct materials and $44 of direct labor.
Required:
a. Calculate the Design activity proportions for Products A and B.
b. Calculate the Machining activity proportions for Products A and B.
c. Calculate the Inspection activity proportions for Products A and B.
d. Determine the indirect costs assigned to Product A.
e. Determine the indirect costs assigned to Product B.
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